BCE Inc. (BCE.TO)

They have re-executed the company and done well at it. They have a safe yield that grows and should continue to do so. It is a low risk investment. He prefers RCI.B-T and T-T given the valuation and growth prospects. The sector is vulnerable to rising interest rates and so is not a preferred sector.

The government has just declared the Internet as a basic service, which will take from the bottom line, but doesn’t think it will be that huge. The rally this year really hasn’t come into play for the telecom companies. At this price level, it is a very attractive entry point. Don’t expect huge growth from this. It is trading at about 18X. There will be some earnings growth. Increasing interest rates help them on their pension liabilities.

He owns nothing in the sector. The nice thing about this is that it is diverse across the spectrum. It has the television as well as the mobile as well as the land lines. He would be more interested in this as a trade, as there are headwinds in the long-term.

He doesn’t own any communications stocks. It is becoming over regulated and more competitive. It is well run and has stayed out of trouble. He does not know how much capital gain you will get but there is a reasonable dividend.

It is one of the sectors that got hammered in the ‘Trump-tantrum’. It is a great time to get in and is one of the best managed companies in Canada. They have done a great job in investing in infrastructure. This is one of the best dividend growth stocks you can have. ARPUs continue to go up.

Part of the fall off is due to sector rotation. People have been hiding out in this for a long time because of the dividends and low volatility. If your goal is to get good dividends and to preserve capital, you can do very well with this.

Has been negative on this for quite some time. Thinks it is worth $47.25. If interest rates start to move up, money is going to start coming out of utilities. Dividend yield of 4.7%.

It sold off a bit recently due to rates moving higher. It is a fairly mature business. It is not attractive enough to him on a free cash flow basis. The dividend is sustainable, however. Don’t move out of it into banks.

Dividend yield of 4.8% is not bad when compared to bonds. People are worried that bonds are going to get to the point where they are going to become competitive to dividend yields. However, there are a lot of arguments to stay in this stock. If held outside a registered account, you get a favourable tax treatment. He doesn’t think interest rates are going to go up that high. Thinks the sentiment is going to keep going against this stock for a while. Pick a target of perhaps 5%-6% and buy when it reaches that.

Good company, good dividend, good yield, solid record, and the stock has come off almost 10%. This gives you a yield and a tax dividend credit that you can’t get anywhere in the fixed income market. A safe stock. Dividend yield of 4.76%. (Analysts’ price target is $62.39.)

A great story. Trading at 16X earnings and has a great dividend yield. They’ve spent a lot of money on the capital expenditures side moving fibre to the home. Thinks there is good upside. Data is doubling every 12 to 18 months, and he sees that as a great opportunity. Owning media and telecom seemed to work well together.

This has sold off on the belief that interest rates are going to rise, so now would be a good time to initiate a position. For the last 7 years, every time people have talked about interest rates going to rise, they haven’t. He suspects this is going to be another one.

Although the takeover of Manitoba Tel (MBT-T) has gone on for 5 or 6 months, there is no reason to think that it will not go ahead. This is a good company. Given that he thinks there is going to be fairly fast growth in the US, you don’t want to be in things that are interest rate sensitive as the telcos are. You might be better buying a bank.

All these income stocks have trailed off a little bit since the election. It was a time for a bit of a breather which presents an opportunity to buy. Cord cutting will increase bandwidth demand. He feels average revenue per wireless user should increase with content delivery.

On the basis of growth, valuation, and where they are positioned in wireless and wireline, he would rank them as Rogers (RCI.B-T), Québecor (QBR.A-T), Telus (T-T) and finally BCE.